GBP/USD: technical analysis 20.12.19

Current trend

GBP/USD is in the stage of upward correction after falling to the level of 1.2329, but the downward trend is still maintained. The breakdown of the support level 1.30005 will let GBP/USD continue the downward dynamic and reach the area of levels 1.29700-1.29395.

Alternative scenario

The pullback and pair’s sustained trading above the 1.30310 level will be a sign of an upward correction and give a prospect of growth to the 1.30615 resistance. The key target of the “bullish” correction will be the level of 1.31226, which corresponds to the middle line of Bollinger Bands. There is a chance of a downward rebound, while its breakout would be a signal for upward trend resumption.

Technical indicators

Technical indicators maintain a sell signal.

Bollinger Bands are converging on the background of bearish momentum.

MACD is growing in the negative zone.

Stochastic’s lines are pointed downwards and are reaching the oversold area.

Support and resistance

Support levels: 1.30005, 1.29700, 1.29395, 1.29784.
Resistance levels: 1.30310, 1.30615, 1.31226.

Trading recommendations

Short positions can be opened below the level of 1.30000 with the target at around 1.29700 and stop-loss at 1.30100.
Long positions can be opened above the level of 1.30310 with the target at around 1.30615 and stop-loss at 1.30210.

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